Draper Esprit investment in UiPath sees serious uplift in value

Venture capital company Draper Esprit updated the market on its UiPath investment on Monday, reporting that the robotic process automation software business had successfully completed a $750m fundraising round at a $35bn valuation.

The AIM-traded firm said the round was led by Alkeon Capital and Coatue, with Altimeter Capital Management, Dragoneer, IVP, Sequoia Capital, Tiger Global Management and funds advised by T. Rowe Price Associates also participating.

It said UiPath provides a robotic software solution for IT-based process automation of legacy processes.

Draper Esprit originally acquired its holding in UiPath in January 2019 through the acquisition of interests in Earlybird Digital East Fund I.

Based on the valuation implied by the fundraising, Draper Esprit's gross fair value before carry deductions was approximately £115m, making for an uplift of £78m to the September fair value of £37m.

“UiPath continues to hold a leading position in its sector and this successful fundraising suggests investors are completely behind the business as it grows,” said Draper Esprit chief executive officer Martin Davis.

“This round demonstrates that investors see even more dramatic growth opportunities for the best tech companies which have become essential to industry and the global economy.

“UiPath is yet another success story coming from our Earlybird partnership, reinforcing the value of that relationship that offers us a broader opportunity to invest in the best European technology companies.”

At 0920 GMT, shares in Draper Esprit were up 3.97% at 736.08p.